The chain of cartels are also said to be importing untaxed raw spirit

A lobby group wants the government to act on the intricate web of illicit alcoholic drinks racket involved in ethanol smuggling and use of fake Kenya Revenue Authority (KRA) stamps to evade tax.

The Futa Magendo Action Network (FMAN) has written to President Kenyatta on alleged unscrupulous traders importing illicit ethanol through the Kenya-Tanzania border.

The chain of cartels are also said to be importing untaxed raw spirit from Tanzania denying KRA billions of shillings from the sale of counterfeit drinks.

“It is impressive that you, being on the forefront on the fight against illicit brews and the revenue realized from this campaign will go far in realising your promises delivered to the Kenyan people and your government’s vision for the country,” the petition reads in part.

Coordinator James Mugo said for the past few years, Kenya’s alcohol industry has been a target for fake manufacturers who have been making a kill at the expense of genuine manufacturers.

Others served include the National Intelligence Service Director General Wachira Kameru, interior ministry, police and National Authority for the Campaign against Drugs and Alcohol Abuse (Nacada).

“With the importation of illegal ethanol comes with the fixation of fake revenue stamps printed in and outside the country.

The fake stamps are required by the illegal manufacturers since they have not paid any taxes on the products. The stamps are uniquely similar to the untrained eye but are confirmed using an electronic reader.” The petition received on Tuesday reads in part.

The lobby group recommended KRA to introduce use of electronic bar codes scanners to determine authenticity of KRA stamps and ensure integrity of the taxman’s surveillance team to curb the vice.

They also want distributors and traders found selling products from an unlicensed manufacturer be held accountable.

“The fake products have become attractive to greedy traders who buy the products at a low price and sell at a premium price therefore making big margins.

The greedy traders buy the original products and mix with the fake products in the hope of making bigger profits from the fakes.”

They want the County Governments through the Council of Governors to ensure compliance of all traders of alcoholic beverages in their respective jurisdictions.

In 2015 President Kenyatta ordered countrywide crackdown, which led to the closure of 115 firms and immediate withdrawal of operating licenses for breach of statutory requirements following recommendation of the inspection report by the Inter-Agency Taskforce on Control of Portable Spirit and Combat Illicit Brews chaired by Joseph Irungu.

The report recommends the containers in which neutral spirit is packaged for storage or transport must be marked in accordance with the provisions of Kenya Standard for Neutral Spirit.

Also, alcoholic drinks products labels are required to specify the contact details of the respective manufactures including their physical location, telephone and email contacts.